* U.S. initial jobless claims rise weighs on oil * China manufacturing gauges slip, weigh on oil, equities * Coming up: U.S. June nonfarm payrolls on Friday NEW YORK, July 1 (Reuters) - U.S. crude futures fell more 3 percent on Thursday, pressured by weak economic data from China and the United States that added to concerns about economic recovery and oil demand growth. "Crude and products futures fell for a fourth day in light overnight volume as global equities slipped on poor Chinese manufacturing data," Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said in a note. Chinese manufacturing growth slowed in June. Two indexes based on polls of purchasing executives released on Thursday fell, although both gauges remained above the threshold of 50 that indicates expansion, not contraction. [ID:nSGE66004Y] The U.S. manufacturing sector grew in June for an eleventh straight month but at a slower rate than expected, a report from the Institute for Supply Management said. [ID:nN01107449] The number of U.S. workers filing new jobless claims rose unexpectedly last week, the Labor Department said, adding to concerns about economic recovery. [ID:nN30242258] Financial markets await Friday's report on June nonfarm payrolls, which are expected to have fallen 110,000, according to a Reuters survey. It would be the first decline in 2010, and is expected to reflect the layoffs among temporary census jobs added in May. Employment increased 431,000 in May. Hurricane Alex slammed into Mexico's Gulf coast on Thursday but spared U.S. oil wells. [ID:nN01273172] Companies started on Thursday to restart some of the 421,350 barrels per day of oil output, about a quarter of Gulf of Mexico output, shut as a precaution. [ID:nN29TORMFA] Wednesday's government oil inventory report showed gasoline and distillate stocks rose last week, with total crude stocks dropping and stocks at Cushing, Oklahoma also down. [EIA/S] PRICES * On the New York Mercantile Exchange, August crude CLQ0 fell $2.45, or 3.24 percent to $73.18 a barrel, at 10:19 a.m. EDT (1419 GMT), having traded from $73.10 to $75.40. * The $64.24 intraday low on May 20 was the weakest front-month price since $62.76 was struck on July 30, 2009. The 2010 peak of $87.15 was struck on May 3. * In London on the Intercontinental Exchange, August Brent crude LCOQ0 fell $2.38, or 3.17 percent, to $72.63 a barrel, trading from $72.55 to $74.65. * NYMEX August RBOB RBQ0 fell 4.92 cents, or 2.39 percent, to $2.0112 a gallon, trading from $2.0068 to $2.0612. * NYMEX August heating oil HOQ0 fell 6.00 cents, or 2.98 percent to $1.9543 a gallon, trading from $1.9463 to $2.0142. * NYMEX July refined products contracts expired Wednesday. * The August/August heating oil crack spread <0#CL-HO=R> was at $8.67 a barrel. The spread ended Wednesday at $8.97. The August/August RBOB crack spread <0#RB-CL=R> was at $11.09. The spread ended Wednesday at $10.91. * The spread between the current front month and the five-year forward crude contract CLc61 was at $11.48, based on the August 2015 contract Wednesday settlement at $84.66. The spread ended on Wednesday at $9.03. MARKET NEWS * The dollar hit a seven-month low against the yen, a three-month low versus the Swiss franc and extended losses against the euro on the weak U.S. manufacturing data. [USD/] * U.S. stocks ticked up at the open after three days of declines, but gains were capped by the unexpected rise in U.S. jobless claims and the manufacturing data out of China. [.N] (Reporting by Robert Gibbons; Editing by Marguerita Choy)

Source